Investors increasingly seek effective management of their financial assets. In response to this growing demand for asset management, various methods have been proposed for developing and implementing asset allocation.
Many assets are invested according to various AAMs, or asset allocation models. An asset allocation model is the term commonly used in the art of financial management to describe diversification of a subscriber's assets among a portfolio of investment options with varying rates of return and risks of loss. Typically, asset allocation models are designed to correlate to a subscriber's risk tolerance.
Asset allocation models are used in retirement plans for investing a subscriber's assets. As the subscriber progresses toward retirement, it typically is desirable to adjust the asset allocation model so as to reduce the exposure of accumulated assets to the risk of loss. However, it is well known that subscribers typically fail to shift their asset allocation models with appropriate periodicity. In fact, many subscribers fail to shift their asset allocation models at all. Thus, large quantities of subscriber assets are not optimally managed, resulting in financial losses to individual subscribers.
Accordingly, there is a need for improved systems and methods of automated financial asset management.